KSB Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

KSB Limited (NSE:KSB) just released its latest first-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹6.0b, statutory earnings missed forecasts by 15%, coming in at just ₹2.97 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on KSB after the latest results.

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After the latest results, the three analysts covering KSB are now predicting revenues of ₹28.9b in 2025. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to ₹17.15. In the lead-up to this report, the analysts had been modelling revenues of ₹29.0b and earnings per share (EPS) of ₹18.25 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for KSB

The average price target fell 12% to ₹882, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic KSB analyst has a price target of ₹964 per share, while the most pessimistic values it at ₹819. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of KSB'shistorical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although KSB is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of KSB's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple KSB analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the KSB Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.